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Engineering & Manufacturing

Industrial product design - R&D Tax Benchmark

What proportion of total business expenses do Australian industrial product design typically claim as R&D under the RDTI?

Typical range
3–15%
Direct (core) R&D as % of expenses
Elevated but plausible
up to 30%
Still defensible with strong evidence
Unusual - review carefully
> 50%
May still be valid; expect AusIndustry scrutiny
Supporting R&D
1–5%
Indirect / supporting activities

What drives R&D intensity in this sector

Pure styling/aesthetic work is excluded; performance-driven design with measurable hypotheses may qualify.

Sector disclaimer

Industrial design fees billed to clients are not R&D. Eligible work usually involves an internal product line or genuinely novel engineering.

ATO & AusIndustry context

Marketability work falls under the market-research exclusion in s355-25(2)(a); purely aesthetic work generally fails the new-knowledge limb of s355-25.

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More benchmarks in Engineering & Manufacturing

Educational benchmark only - not an eligibility test or tax advice. Final eligibility depends on whether your activities meet the s.355-25 / s.355-30 core and supporting R&D definitions and is determined by AusIndustry on registration.